If Britain had not joined the ERM, the policy options it would have had available to avoid recession would have been:
A) severely limited.
B) more numerous and varied.
C) subject to veto by the European Parliament.
D) a conflict with its desire to maintain a stable economy.

Question

Quizplus · Accepted Answer

Joining the ERM limited Britain's monetary policy flexibility. Without this constraint, Britain would have had more varied policy options to stimulate the economy or adjust monetary policy to avoid recession.

If Britain Had Not Joined the ERM, the Policy Options